GobiMin's wholly-owned subsidiary has entered into agreements to form two joint ventures in China to participate in resource exploration on Xinjiang's Xinyuan Yuximolegai Copper Deposit and Xinjiang's Nileke Alasitan Copper Deposit.
The company says both joint ventures will apply for mining permits on the respective deposit upon formation, which is expected to take four to six months. GobiMin shall acquire an approximate 40% equity interest in each of the joint ventures by contributing a total of about RMB10,000,000 in cash, which will be fully settled through its internal resources. The other shareholders of the joint ventures are subsidiaries of the Xinjiang Bureau of Geology and Mineral Resources, who discovered the deposits and provided the related geophysics information. GobiMin will delegate geologists and management to operate and manage the joint ventures.
The company has not yet released data on either how it plans to lessen environmental damage to the surrounding mine areas, or how it plans to implement safe mining activity with its laborers.
"GobiMin has been working for some time on completing these joint venture opportunities with the Xinjiang Bureau of Geology and Mineral Resources and we hope that this is the first in a series of joint ventures with this group", said Felipe Tan, President and CEO.
The XY Deposit is located in the Yuximolegai area, 110 kms away from the city of Xinyuan, Xinjiang, China and is accessible by the national highway. At an altitude above 3,200 meters, the XY Deposit is located in a high mountain area with a deep degree of dissection.
The Alasitan Deposit is 140 kms west of the city of Xinyuan County, 200 kms from the city of Nileke County and 16 kms away from the national highway. It is located mostly at an altitude above 3,000 metres.
